The final figure of German Q2 GDP confirmed that the German economy grew by 0.1% Q/Q in the April to June period, but the details are somewhat disappointing. Private consumption fell back sharply (-0.7% Q/Q) and also net exports provided a drag to growth. Capital investment increased only marginally (0.3% Q/Q from 4.5% Q/Q) and government consumption rose slightly (0.2% Q/Q).
The biggest positive contribution came from change in inventories, adding 0.7% Q/Q to growth. The headline figure was already disappointing and the details show an even bleaker picture as growth was only due to a unwarranted? increase in inventories, which might weigh on production later on.